African Market to Represent 50% of Global Revenue for Moroccan and French Companies By 2022

Sub-Saharan Africa has been identified to be promoting Moroccan and French businesses as a study conducted by BearingPoint and Asmex indicates that Moroccan and French companies have attained a good position and growth level in some Sub-Saharan countries. The study which is titled “Developing in Africa: comparisons of Moroccan and French companies” and the third edition of BearingPoint’s International Development Barometer of international firms, depicts the good performance of about 250 Moroccan and French companies in five major countries across the region – including Algeria, Cameroon, Ivory Coast, Mali and Senegal.

The recent development and growth have been attributed to the development strategies and techniques adopted by these Moroccan and French companies within the continent. The report also disclose that rising number of customers and purchasing power accounts for the presence and good performance of French companies in the continent. The Moroccan companies largely deals in export and distribution of production in Sub-Saharan Africa, since they require a large network of potential allies to work with, the French companies comes in to facilitate that. Most French companies are vest with diverse local sites and network in the conversion and industrial field, making it easier for the two to act as partners.  Ivory Coast, Morocco, and Cameroon are the leading countries of establishment for the French groups while Senegal, Ivory Coast and Gabon are leading nations of establishment for the Moroccan group.

Between 2015 and 2016, the optimism about revenue generation in doing business in Africa for these companies under study have changed significantly. According to the report, 86 per cent of Moroccan companies had earlier noted that revenue from Africa contributed less than 5 per cent of their total revenue. However, in 2016, about 20 per cent of the companies believe that Africa could contribute to about 50 per cent of their global turnover in almost half a decade to come. Currently, Africa is responsible for more than 5 per cent of total revenue for more than half of these companies.

In a statement by Jean-Michel Huet, an associate at BearingPoint, he said “These Moroccan and French figures confirm a major trend: the ‘African risk’ relating to the political situations and the business environment no longer represents an insurmountable obstacle. The potential and opportunities on the continent – which will have 2 billion inhabitants in 2050, with over 900 million of these belonging to the middle class – are much more powerful parameters for companies when defining their international development strategies.”

For half a decade now, reports and some research have placed Africa on the edge of a high potential of rapid economic development. Although, this might seem quiet complex to apprehend, companies with the foresight are setting ambitions to tap into the untapped potentials of the continent and to lead some sectors of business and development in Africa.

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